7. Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Summary of stock option activity

	Six Month Period Ended
	June 30, 2015
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		1,390,770		$	1.50
Granted		1,280,881		$	2.06
Exercised		(69,999	)	$	1.14
Outstanding at June 30, 2015		2,601,652		$	1.79
Stock options exercisable at June 30, 2015		1,214,517		$	1.39

Weighted average assumptions of share based payment

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2015		2014		2015		2014
Risk free interest rate		1.77%		2.14%		1.77%		2.14%
Dividend yield		0.0%		0.0%		0.0%		0.0%
Expected term (in years)		7		7		7		7
Volatility		105%		105%		105%		105%

Stock compensation expense

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2015		2014		2015		2014
Research and development costs	$	19,414	$	9,351	$	26,358	$	17,486
Sales and marketing costs		19,270		2,563		25,025		5,286
General and administrative costs		57,677		39,111		65,450		65,276
Cost of product sales		28,501		6,532		41,538		21,128
Total	$	124,862	$	57,557	$	158,371	$	109,176